DOL Issues Final FSLA Overtime Rule

On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation.

The final rule increases the salary an employee must be paid in order to qualify for a white collar exemption. The required salary level is increased to $47,476 per year and will be automatically updated every three years. The final rule does not modify the duties test employees must meet to qualify for a white collar exemption.

Employers will need to comply with this rule by Dec. 1, 2016.

ACTION STEPS

  • Employers must become familiar with the new rule and identify which employees will be affected. Employers should reclassify employees as exempt or non-exempt, as necessary, by December 1, 2016 (further details on final rule available upon request).
  • Employers should also consider communicating any work schedule changes to affected employees before the date mentioned above (sample communication available upon request).
  • Employers should evaluate whether implementing new timekeeping practices and training for managers and supervisors on the new requirements is necessary.